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2 years ago

Which one of the following is common between optimization using total value and optimization using marginal analysis?

Business

1 answer:

Temka [501]2 years ago

5 0

Common between optimization using total value and optimization using marginal analysis is:

Both techniques require the conversion of all costs and benefits into a common unit of measurement.

What is the principle of optimization at the margin?

The Principle of Optimization at the Margin states that an optimal feasible alternative has the property that moving to it makes you better off and moving away from it makes you worse off.

Optimization using total value:

calculates the change in net benefits when switching from one. alternative to another.

optimization using marginal analysis:

calculates the net benefits of. different alternatives.

Total Value analysis :

has a wide range of applications. The analysis can be used to assess an organization's key impacts, or provide more detailed information such as an assessment of the life cycle impacts of a product.

marginal analysis:

is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.

Learn more about optimization:

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A 20-year-old student wants to save $5 a day for her retirement. Every day she places $5 in a drawer. At the end of each year, s

ollegr [7]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

At the end of each year, she invests the accumulated savings ($1,825) in a brokerage account with an expected annual return of 8%. She will invest for 45 years.

A) We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {1825[(1.08^45)-1]}/0.08= $705,372.75

B) n= 25

FV= {1825[(1.08^25)-1]}/0.08= $133,418.34

C) FV= 705,372.75 A=?

We need to isolate A:

A= (FV*i)/{[(1+i)^n]-1}

A=(705,372.75*0.08)/[(1.08^25)-1]

A= $9,648.64

7 0

4 years ago

Molly still has a $2500 down payment. How much loan does Molly need?

deff fn [24]

Answer:

remember that molly has a $2500 down payment saved for this purchase the dealer will take $500 cash allowance straight off her total how much does molly need

Explanation:

Molly needs = Down payment + Cash Allowance

=\$2500+\$500=$2500+$500

Molly Needs= \$3,000.=$3,000.

7 0

3 years ago

One of the lottery tickets that you can purchase at a local store has these payoff probabilities. Payoff ($) 0 200 500 Probabili

WARRIOR [948]

Answer:

Pay-off Probability EV Payoff - Mean (Pay-off - Mean)2.P

$ $

0 0.50 0 -190 18,050

200 0.20 40 10 20

500 0.30 150 210 13,230

Mean 190 Variance 31,300

Standard deviation = √ Variance

Standard deviation = √ 31,300

Standard deviation = 176.92

Explanation:

In this case, we need to determine the mean, which is the product of pay-off and probability. Then, we will deduct the mean from the pay off. raise the difference between the pay-off and mean to power 2 and multiply by probability. This gives the variance of the pay-off. The square root of the variance of the pay-off gives the standard deviation of the pay-off.

7 0

3 years ago

Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to c

madam [21]

Answer:

a. Accounts Receivable (Dr.) $93,000

Bonus Receivable (Dr.) $2,325

Service Revenue (Cr.) $95,325

b. Service Revenue (Dr.) $9,300

Bonus receivable (Cr.) $9,300

c. Accounts Receivable (Dr.) $93,775

Bonus Receivable (Dr.) $775

Service Revenue (Cr.) $93,000

d. Cash (Dr.) $29,000

Bonus Receivable (Cr.) $29,000

Explanation:

The contract between Burger Boy and Velocity is for eight months.

Expected value of the contract on 1st month is :

80% * [ $93,000 * 8 months + $31,000 ] + 20% [ $93,000 * 8 months - $31,000] = $762,600

The expected value per month is $762,600 / 8 months = $95,325 per month

Expected value of the contract 5th month with revised probability is :

60% * [ $93,000 * 8 months + $31,000 ] + 40% [ $93,000 * 8 months - $31,000] = $750,200

The expected value per month is $750,200 / 8 months = $93,775 per month.

5 0

3 years ago

Consider the example of an individual in a grocery store examining two cans of peaches, Alpha Peaches and Beta Peaches. If Alpha

Wittaler [7]

Answer:

True.

Explanation:

True, The given situation is true because the pleasure (utility) provided by Alpha is greater than the pleasure (utility) provided by the Beta. Therefore, a rational person will buy only that commodity which has a higher utility. Here, we can see the Alpha provides 10 units of utility or pleasure per dollar while Beta provides 8 units of utility or pleasure per dollars. So, only Alpha will be chosen.

7 0

4 years ago

Which one of the following is common between optimization using total value and optimization using marginal​ analysis?

Which one of the following is common between optimization using total value and optimization using marginal analysis?